Global investors are launching a climate plan to pressure gas emitters

A group of more than 200 global investors, including banking giant HSBC and French insurer AXA, are following through on a promise to fight climate change by pressuring the biggest gas emitters on the issue.

On Tuesday, a coalition of 237 companies announced the launch of “Climate Action 100+”, a five-year initiative aimed at engaging 100 of the world’s largest corporate greenhouse gas emitters to step up action on climate change.

The plan will focus on three key measures: “to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures,” the press statement announcing the plan read.

French insurer Axa also announced Tuesday it would speed up its move away from the carbon sector, divesting some €2.5-billion ($2.9-billion) from companies which derive more than 30% of their revenues from coal.

Among the companies targeted are large oil and gas companies such as BP, Chevron and Coal India, firms in the transport sector like Airbus, Ford and Volkswagen, and mining and steel groups like ArcelorMittal, BHP Billiton and Glencore.

The energy sector is responsible for three quarters of greenhouse gas emissions on the planet.

“Moving 100 of the world’s largest corporate greenhouse gas emitters to align their business plans with the goals of the Paris Agreement will have considerable ripple effects,” Anne Simpson, Investment Director of Sustainability at CalPERS, said in a statement.

“Our collaborative engagements with the largest emitters will spur actions across all sectors as companies work to avoid being vulnerable to climate risk and left behind.”

During the five years, investors will monitor companies on the list to see how closely they follow through with implementing the climate measures. They will be removed once enough progress has been made.

Thee 237 companies have a combined market capitalisation of over $6.3-trillion (€5.3-trillion), which includes 150 financial firms that are responsible for assets of over $81.7-trillion.


“Climate change is a material and systemic risk no long-term investor can afford to ignore,” said Stephanie Maier, director of HSBC’s Responsible Investment.

The announcement was made as French President Emmanuel Macron is hosting world leaders in Paris for talks two years to the day since the Paris agreement to curb climate change.

The meetings focus on marshalling public and private funds to speed the move to a low-carbon economy.

In July, investors had urged world governments to support and fully implement the agreement, saying that “the mitigation of climate change is essential for the safeguarding of our investments”.

© Agence France-Presse

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Agence France Presse
Agence France Presse works from worldwide. AFP Photo's official Twitter account. Tweeting news and features from Agence France-Presse's global photo network Agence France Presse has over 120540 followers on Twitter.
Advertising

Where is the deputy president?

David Mabuza is hard at work — it’s just not taking place in the public eye. The rumblings and discussion in the ANC are about factions in the ruling party, succession and ousting him

Zuma turns on judiciary as trial nears

Former president says pre-trial correspondence is part of another plot

High court declares Dudu Myeni delinquent

Disgraced former SAA chairperson Dudu Myeni has been declared a delinquent director by the...

SANDF inquiry clears soldiers of the death of Collins Khosa

The board of inquiry also found that it was Khosa and his brother-in-law Thabiso Muvhango who caused the altercation with the defence force members
Advertising

Press Releases

Obituary: Mohammed Tikly

His legacy will live on in the vision he shared for a brighter more socially just future, in which racism and discrimination are things of the past

Openview, now powered by two million homes

The future of free-to-air satellite TV is celebrating having two million viewers by giving away two homes worth R2-million

Road to recovery for the tourism sector: The South African perspective

The best-case scenario is that South Africa's tourism sector’s recovery will only begin in earnest towards the end of this year

What Africa can learn from Cuba in combating the Covid-19 pandemic

Africa should abandon the neoliberal path to be able to deal with Covid-19 and other health system challenges likely to emerge in future

Coexisting with Covid-19: Saving lives and the economy in India

A staggered exit from the lockdown accompanied by stepped-up testing to cover every district is necessary for India right now

Covid-19: Eased lockdown and rule of law Webinar

If you are arrested and fined in lockdown, you do get a criminal record if you pay the admission of guilt fine

Covid-19 and Frontline Workers

Who is caring for the healthcare workers? 'Working together is how we are going to get through this. It’s not just a marathon, it’s a relay'.

PPS webinar Part 2: Small business, big risk

The risks that businesses face and how they can be dealt with are something all business owners should be well acquainted with

The best local and international journalism

handpicked and in your inbox every weekday